We are nearing the end of the financial protections that kept many households afloat throughout the Covid-19 pandemic. These protections will end in the coming days and weeks, including enhanced unemployment benefits and moratoria on evictions and mortgage foreclosures. While government agencies have renewed many protections multiple times, it is unlikely that extensions will continue as more people get vaccinated and the economy continues to recover.
Here’s a timeline of when some of the most critical protections will end unless the government takes further action, but as we said, that is unlikely.
The scheduled federal eviction moratorium will lapse on July 31. While it has been extended multiple times throughout the pandemic, it is not likely to be again.
Seven million Americans are now behind on their rent due to the pandemic. As a result, both the New York and California eviction have extended moratoriums; — New York’s moratorium lasts through August 31, and California now lasts through to September 30, 2021.
States also still have billions of dollars in rental relief to give out to tenants in need. But, so far, the relief process, which varies by state and in some cases locality, has been slow-moving for many. Remember the saying, “I’m from the government. I’m here to help.”
The mortgage foreclosure moratorium will also lapse on July 31, and it is not likely to be extended. That said, the Consumer Financial Protection Bureau (CPFB) has put three additional measures in place to help homeowners who are more than 120 days behind on their mortgage payments.
Enhanced unemployment insurance payments have already ceased being paid to millions of Americans after dozens of Republican state governments cut the federal benefits early to encourage recipients to go back to work. (some of these states face lawsuits as a result).
For the rest of the states, the $300-per-week federal supplement and all benefits for the self-employed, gig economy, and freelance workers will end on Sept. 6, 2021. In addition, the Pandemic Emergency Unemployment Compensation program, which currently provides additional weeks of benefits to the long-term unemployed, will also end. After that, the unemployed will be eligible for the standard number of weeks of benefits that their states allow in non-pandemic times.
A 15% increase in maximum benefits for recipients of Supplemental Nutrition Assistance Program (SNAP) benefits expires after Sept. 30.
Federal student loan payments, which paused for the past 16 months, are scheduled to resume on October 1, 2021. An extension here is possible.
“Whatever sacrifices you’re going to make in order to come up with that payment each month, I would say start now,” Shelly-Ann Eweka, senior director of financial planning strategy at TIAA.
Paige Panzarello, the “Cashflow Chick,” Founder of The Tryllion Group, Investor/Entrepreneur having done $150 Million+ in real estate transactions; Specializing in Non-Performing Notes. She has been a regularly featured guest on “The Cashflow Guys” podcast, and you can also find her on many other Real Estate and Entrepreneurial podcasts and in the Wall Street Journal as well. She also speaks at various Real Estate Investing clubs and conferences across the country. Paige teaches the “Building Wealth with Notes” Workshop that drills down into the details of how to successfully buy Non-Performing Notes, create passive income, and mitigate risk. www.CashflowChick.com/training
Surviving the crash of 2007, Paige knows how “life happens” every day. Her passion is to help people build wealth, secure their financial future, enjoy life, and be ready-not broken! Whether it is improving communities one house at a time, assisting borrowers in staying in their homes, or working with other investors to learn a new way to earn higher investment dollars for their retirement years potentially, Paige dedicates herself and her business to helping people improve their lives in every way. For more information got to www.CashflowChick.com